If you’re the owner of a new business, taxes may not be at the top of your mind: It’s likely that you have dozens of other tasks and challenges to think about. However, by following this article’s business tax tips from the start, you can reduce your stress when tax season comes around and likely save your business money.
Utilizing tax software is a way to remove much of the guesswork and tedious labor from filing taxes. Tax software can both identify savings opportunities you might have missed otherwise and save your tax records from year to year in case you need them. If you’re having trouble choosing, Business News Daily recommends TurboTax as the best online tax software for small businesses.
No list of business tax tips would be complete without touching on receipts. It’s vital that you keep them to maximize your deductions and track your finances—but it can also be a hassle. However, there are many receipt-tracking apps that can make this task easier.
Deduct Home Office and Car Expenses
If you work from home and/or use your car to help run your business, be sure to track those expenses so that you can deduct them at tax time. The only sticking point is accurately assessing the amount of home- and car-related expenses that count as business expenses. Tax software or a tax professional can help here.
Don’t Forget Retirement
Some of the best business tax tips are related to retirement. If you put money toward a traditional retirement account, it will not be taxed until you retire and withdraw the funds. That means the money has a chance to grow from a higher starting point. Another option is a Roth individual retirement account, in which the funds are typically tax-free when withdrawn. Don’t ignore these valuable savings vehicles.
Capital Connex’s other blog posts are a great resource if you’d like to keep learning about the business world.